Passidomo's foreclosure reform proposal passes Legislature

TALLAHASSEE - Legislation to streamline the state's foreclosure process has cleared its final legislative hurdle.

Now the fate of House Bill 87 — the mortgage foreclosure bill carried by Rep. Kathleen Passidomo, R-Naples, in the House and Sen. Jack Latvala, R-Clearwater, in the Senate — lies in the hands of Gov. Rick Scott.

The state Senate on Friday approved the measure 26-13, with both Sen. Lizbeth Benacquisto, R-Fort Myers, and Sen. Garrett Richter, R-Naples, voting for the bill. Approval came on the final day of the 2013 legislative session; last year it failed to pass on the session's final day.

The bill shortens the time period that banks can collect losses from five years to one; requires banks to produce the note at the time of the foreclosure; and allows lien holders, like a homeowner's association, to initiate the foreclosure process.

The legislation expedites the process by requiring a judge to immediately review any foreclosure filings in chambers without a hearing, before asking the parties to show cause why a final judgment should be entered.

That process allows the judge to enter a final judgment quickly if the lender feels the borrower has no defense. But if a homeowner believes he or she has a case, a judge will be required to hear the homeowner's case.

The bill passed the state House of Representatives on Monday.

Supporters of the bill have said speeding up the process means properties will quickly be put back on the market; while opponents said the bill goes too far and doesn't protect the consumer.

"As you all know, we're still No. 1 in the nation for foreclosures. The big solution: Kicking people out of their houses quicker," said Sen. Darren Soto, R-Orlando. "This isn't a legacy I want to leave and I assure you when you get back to your district, they're not going to want you to leave it either."

Soto on Thursday proposed an amendment that would give borrowers a chance to get back their house if it was wrongfully foreclosed on. That amendment — much like a similar one proposed on the House floor last week — was voted down.

Passidomo said her bill does protect someone who may have lost their home because of fraudulent activities. That provision would allow the borrower to sue the bank for damages if they were wrongfully foreclosed on.

"On balance, it is far more tilted to the consumer than the banks," Latvala said Friday.

Passidomo has been pushing foreclosure legislation since 2011, her first year in office. The bill passed the House in 2012, but didn't make it through the Senate.

The bill now heads to Scott for his signature. Passidomo said she hasn't talked to the Naples Republican governor about whether he plans to sign the legislation, but said she knows opponents to the measure are likely to ask Scott to veto it.

Jackie Schutz, a spokeswoman for Scott, said his office plans to review the legislation.

POSTED EARLIER

The third time's the charm for one Southwest Florida representative's top priority.

The state Senate this morning voted 26-13 to approve a measure that speeds up the foreclosure process. The bill – which has been sponsored by Rep. Kathleen Passidomo, R-Naples, for the past three years – now heads to the governor's office for his signature.

"I can't believe it," said Passidomo, as she walked back to House chambers after being on the Senate floor for the vote. "It's really terrific."

The foreclosure bill — House Bill 87 — shortens the time period that banks can collect losses from five years to one; requires banks to produce the note at the time of the foreclosure; and allows lien holders, like a homeowner association, to initiate the foreclosure process.

The legislation expedites the process by requiring a judge to immediately review any foreclosure filings in chambers without a hearing, before asking the parties to show cause why a final judgment should be entered.

That process allows the judge to enter a final judgment quickly if the lender feels the borrower has no defense. But if a homeowner believes he or she has a case, a judge will be required to hear the homeowner's case.